Why Did Stanford Kurland Suddenly Leave Countrywide?

Here is what the Countrywide PR News Said:
"Countrywide Financial Corporation Appoints David Sambol President & Chief Operating Officer 09/08/2006
Stanford L. Kurland to Step Down

CALABASAS, Calif., Sept. 8 /PRNewswire-FirstCall/ -- Countrywide Financial Corporation (NYSE: CFC) announced today that it has appointed David Sambol as President and Chief Operating Officer. Additionally, Stanford L. Kurland will step down from his current role and will leave the Company.

A 21-year veteran of Countrywide, Mr. Sambol most recently served as Executive Managing Director of Business Segment Operations, and has led all revenue generating functions of the Company since assuming that post, including serving as President and Chief Operating Officer of Countrywide Home Loans ("CHL"), which is the Company's principal mortgage originations and servicing subsidiary. He has also had oversight responsibility for Countrywide Bank, Countrywide Insurance Group, Countrywide Capital Markets ("CCM") and Countrywide's Global Operations.

In addition to overseeing all of Countrywide's revenue generating business units, Mr. Sambol's responsibilities currently include leadership of corporate operational and support units comprised of Administration, Marketing and Corporate Communications and Enterprise Operations and Technology. Mr. Sambol is a member of the Executive Committee of Countrywide Financial Corporation. In his new position as President and Chief Operating Officer of Countrywide Financial Corporation, Mr. Sambol will be responsible for leading all operations of the Company.

Mr. Sambol began his career with the Company as a director of internal audit. Prior to joining Countrywide, Mr. Sambol served as a Certified Public Accountant with the accounting firm of Ernst & Whinney.

"Dave Sambol is an extremely talented operations executive and entrepreneur, and he has been one of the driving forces behind the Company's extraordinary growth during the past five years," said Chairman & CEO Angelo R. Mozilo. "He possesses the unique combination of business building, operations, and risk management skills to lead Countrywide's day-to-day operations and carry it through the challenges and opportunities of both the current and future business environments," added Mr. Mozilo.

Mr. Sambol has been instrumental in building Countrywide's mortgage business into becoming the leading mortgage lender in the financial services industry. Under his leadership, Countrywide Home Loans has expanded to become the most comprehensive end-to-end platform in the industry, with the largest market share growth of any mortgage lender in the United States. Countrywide's mortgage market share has grown from 6% at the end of 2000 when Mr. Sambol assumed oversight of CHL, to more than 15% at the end of 2005.

Mr. Sambol also established Countrywide Capital Markets, and served as its President and Chief Executive Officer. Under his direction, CCM has become one of the nation's leading fixed income securities firms. In 2005 CCM traded $3 trillion in securities and generated pre-tax earnings of $452 million.

"Countrywide's continued growth and success will be fueled by the same drivers that have propelled our historic success: our customer-centric business philosophy, our performance-driven culture, continuous enhancement of our business processes, and our effective governance and risk-management framework," said Mr. Sambol.

"Our focus on real estate finance and related activities is Countrywide's most powerful competitive advantage, and we plan to maintain our focus on the Company's core businesses and leverage our unique capabilities to capitalize on the ongoing consolidation in our industry," added Mr. Sambol.

The Company also announced that Stanford L. Kurland will step down from his role as President and Chief Operating Officer, and will leave the Company. Mr. Kurland's career at Countrywide spans 28 years, during which he served in a number of different roles. "Stan has made significant contributions to Countrywide's success," said Chairman and CEO Mozilo. "On behalf of Countrywide, we thank Stan for his years of service to the Company and wish him well in his future endeavors," added Mr. Mozilo.

About Countrywide Financial Corporation

Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide's website at www.countrywide.com.

SOURCE
Countrywide Financial Corporation

CONTACT:
Media Inquiries, Corporate Communications, +1-800-796-8448, pressroom@countrywide.com, or
Investor Inquiries, Investor Relations, +1-818-225-3550, ir@countrywide.com
both of Countrywide Financial Corporation"

It barely mentions anything about Stanford Kurland's sudden departure, instead focusing almost exclusively on David Sambol and his attributes. Hmmm...

Here is another article from LA Biz Observer:
http://laobserved.com/biz/2006/09/will_angelo_mozilo_r.php

This story goes on to talk about succession plans at Countrywide with Stanford Kurland to take over for the "little guy"-Mozilo. There appears to be some conflicting indication whether or not Mozilo was ready for retirement. They cite two separate interviews where he is and is not ready for retirement. There is some speculation that possibly Stanford Kurland left the company because he might have lost favor from Mozilo and David Sambol was heir apparent at Countrywide. They also discuss how Countrywide is a notoriously "opaque" company so they don't exactly know how the company is actually run. All in all, the notion that Mozilo is selling his interest in CFC like it is going out of fashion based on the premise that he is ready to call it quits is conflicting. This story seems to point more towards the fact that Mozilo is selling for selfish reasons. Hence that may be the reason why Stanford Kurland left the company because Mozilo was not ready to give up the reins.

How about this one from topix.net titled "Countrywide President Kurland Departs"?
http://www.topix.net/content/trb/3999914420108332761429609168823917572746

It appears from this article that Stanford Kurland left the company due to contraction of the business and the fact that Mozilo who did not retire at age 68 as he said previously on December 16, 2006. This article continues to state that who ever takes over as CEO will have a difficult time due to contraction in the home lending business. But it is now March 29, 2007 and Mozilo is still the CEO and Chairman of the company while selling his shares of the company. That contradicts his interview with Maria Bartiromo (CNBC) when he said he was running out of time and that he needed balance in his life. If that is the case, why has he not stepped down as CEO yet? Is something else going on? Why are the insiders selling? Did Stanford Kurland know something was wrong? Why hasn't David Sambol take over as CEO on Mozilo's 68th birthday as planned?

How about this one from thefreelibrary.com?
http://www.thefreelibrary.com/As+market+softens,+countrywide+chief+decides+he'll+stay-a0152745854

This story quite possibly is the most important story that might tie in the reasons for Mozilo's deciding to stay on as CEO and Chairman at Countrywide. It appears that Stanford Kurland was the man that Mozilo had the most confidence in to take over as the CEO of Countrywide. With his departure for "personal reasons", Mozilo has indirectly demonstrated that he possibly doesn't have much faith in David Sambol to be the CEO and decided not to retire. What again is questionable is this. Did Stanford Kurland leave the company for something that he didn't agree with? Possibly due to accounting irregularites? Is Mozilo staying on trying to save this company from disaster? It doesn't make much sense because Mozilo and the insiders have been liquidating their shares like its dooms day. Remember, Stanford Kurland was an accountant for Grant Thorton and he audited Countrywide's books in 1970's before joining Countrywide.

The question is, did Kurland see something that was not right? Why was Countrywide or Kurland so mum on the reasons for departure. Where is Stanford Kurland now? I have emailed the LA Times staff writer that wrote this article to find out. We will see.

My Take:

Stanford Kurland's sudden departure and Mozilo deciding not to retire at age 68 remains a mystery. What did Stanford Kurland know that led to his departure from Countrywide? Why did Mozilo decide to remain the CEO and Chairman when all he talked about was enjoying his life and not suffering the same fate as his butcher father who died at age 59? Why did Mozilo hint that his time was near in an interview with Maria Bartiromo (CNBC) when asked about his rather alarming rate of insider activity on the sell side?

I think something is drastically wrong with Countrywide. It may be accounting irregularities but something is not right. With David Sambol, who in my analysis, was passed up by Mozilo as the next heir apparent, earning a whopping $19.3 million dollars in 2007. The astonishing rate of "liquidation" by Countrywide insiders point to something drastically wrong at Countrywide. In addition, the spin put on by Mozilo on CNBC to keep share prices where they are might just be a ploy to buy time to unload most of the insider shares in the company. I am anticipating something gigantic to break in the near future for Countrywide.